Non-life insurers have recorded a decline of more than 10 per cent in premiums earned For the second consecutive month, owing to the disruption caused by covid-19 and the subsequent imposition of lockdown to contain the spread. These companies saw their premium collection decline 10.6 per cent to Rs 14,206 crore in April, from Rs 15,891 crore in the same month a year ago.
While private sector insurers posted a steeper decline of 16.18 per cent in monthly premium collections, their public sector counterparts saw premiums decline by 5.68 per cent in the same period. In absolute numbers, private insurers earned Rs 6,722.29 crore in premiums in April, and public sector insurers had a premium collection of Rs 6,559.16 crore.
Among public sector insurers, New India Assurance, the largest state-owned general insurer, posted a positive growth of 7 per cent in premiums earned. National Insurance and Oriental Insurance saw their collections decline, while premium growth at United India Insurance was flat. Among private insurers, barring a few such as Go Digit Insurance, Future Generali, Universal Sompo, which postedpositive growth, most others saw their collections declining in April.
While ICICI Lombard's premium collection contracted by 9 per cent, Bajaj Allianz recorded a 21 per cent drop, HDFC Ergo's collection dipped by 16 per cent and Reliance General by 8 per cent.
The standalone health insurers, seven in all, reported a seven per cent growth in premiums earned during April, to Rs 888 crore from Rs 831 crore. The specialised public sector insurers saw premiums decline by 57 per cent to Rs 36.74 crore from Rs 85.27 crore.
While on the one hand premiums have declined for insurers, claims have also not risen sharply both in motor and health, giving some relief to insurance companies. In the health segment, non-Covid claims have fallen by 40 per cent, while covid claims have also not risen significantly. The motor segment has also seen a drop in claims, with fewer vehicles plying on the road. However, insurers expect claims to rise once the lockdown is eased.